Stealth tax proposals include a cut to child benefit, higher college fees, a medical card charge, and a property tax.

Yet Varadkar added: “No government wants to raise taxes or cut spending. It’s not because it will create jobs and boost the economy, because it won’t do any of those things, but we’re borrowing €12bn a year.”

In response, Consumers’ Association of Ireland chairman Michael Kilcoyne has accused Varadkar of living in a land of make-believe.

“My only reaction is there is no doubt about it, nine months into the job and he (Mr Varadkar) has moved into the world of make-believe,” said Kilcoyne.

“He’s just not living in the real world. The Government is moving from direct to indirect taxation and that hits people on fixed incomes far more.

“A car and petrol isn’t a luxury if you’re in the country. People absolutely won’t be able to take a holiday next year. There’s many that unless they have free travel, won’t even be able to go to another town.”